Tag: Amazon

Here’s a piece I wrote for the BBC which went out today. (They often air some time after I’ve recorded them.)

It’s very hard to be in the technology business these days because you don’t know when someone is going to be a cuckoo, A cuckoo, in case you are not an ornithologist, are what are called brood parasites, which means they lay their eggs in another bird’s nest — effectively outsourcing the whole brooding process.

Technology players have been playing this game for a while. The problem is that no one is quite sure who is the cuckoo, who is the sucker and what’s the nest. I call it cuckoonomics.

Take the recent spat between Apple and Google. Google was quite happy to have its Maps software on an iPhone — after all, it makes more money from an iPhone than it does from a phone running its own Android software — but it didn’t want to give away the farm. So it wouldn’t allow a feature which allowed users to navigate turn by turn. So Apple ditched the whole thing and went, somewhat disastrously, with its own version of maps.

Google in this case thought it was being a cuckoo, and the iPhone was the nest. But it didn’t want iPhone users enjoying the product so much that its own users jumped ship.

In the old days technology was about hardware. Simple. You make something, put a sticker on it, and sell it. That’s all changed. Now it’s about software, about services, about experience. I may run an expensive telecommunications network but I can’t control what goes on it. Cuckoos offering video, games, messaging etc flock onto it, parking their eggs and reaping the benefits.

It happens in more subtle ways, though the implications may be just as drastic. Microsoft is about to launch a new version of its operating system called Windows 8. It’s quite quite different from before and a major gamble; not surprising, because Microsoft’s once cushy nest is being dismantled by Macs, mobiles and tablets.

It’s a brave attempt by Microsoft, but what’s interesting to me is how they’ve aimed their sights not at Apple but at Google. Microsoft have baked search so far into their new operating system they hope it will be where we do most of our stuff. From one place we can search all our apps, the web, our contact list, our saved notes and documents.

Of course this isn’t new. You can do this on a Mac, on an iPad, on an Android phone, even on a Windows PC. But it’s not been quite as well done before.

I’ll wager if Windows 8 catches on this will be one of its biggest features, and Google as a result will take a hit. Which is ironic because it’s been Google who have used cuckoonomics against Microsoft for more than a decade, gradually building a library of services around search that have ended up taking over Microsoft’s nest. Think Gmail taking over Outlook and Hotmail; Docs taking over Office, and then eventually the Chrome browser taking over Internet Explorer.

What’s intriguing is that Microsoft is also trying to the same trick with Facebook. Windows 8 dovetails quite nicely with your Facebook stuff but at no point does it look like Facebook. I couldn’t find a Facebook app for Windows 8 but it didn’t seem to matter; instead all my Facebook friends, updates, photos and messages all appeared within Windows 8 — with rarely a Facebook logo in sight.

Here I discuss on my regular slot with Adelaine Ng of Radio Australia patent wars, Amazon’s pricing policy and anything else we can think of. (This is from last Wednesday, so probably of historical interest only, unless you like hearing me say ‘er’ a lot.)